[Federal Register Volume 66, Number 190 (Monday, October 1, 2001)]
[Rules and Regulations]
[Pages 49864-49865]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24390]


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DEPARTMENT OF DEFENSE

48 CFR Parts 232 and 252

[DFARS Case 2001-D012]


Defense Federal Acquisition Regulation Supplement; Customary 
Progress Payment Rate for Large Business Concerns

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: DoD is amending the Defense Federal Acquisition Regulation 
Supplement (DFARS) to increase the customary uniform progress payment 
rate for large business concerns from 75 percent to 80 percent. The 
progress payment rate change is applicable only to contract awards made 
on or after October 1, 2001. Contracts awarded before October 1, 2001, 
will not be modified to include the 80 percent rate.

EFFECTIVE DATE: October 1, 2001.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra Haberlin, Defense 
Acquisition Regulations Council, OUSD (AT&L) DP (DAR), IMD 3C132, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0289; 
facsimile (703) 602-0350. Please cite DFARS Case 2001-D012.

SUPPLEMENTARY INFORMATION:

A. Background

    This final DFARS rule conforms the DoD customary uniform progress 
payment rate for large business concerns with the progress payment rate 
for large business concerns currently being used by other Executive 
agencies under Federal Acquisition Regulation 32.501-1(a).
    This final rule is unchanged from the proposed rule that was 
published at 66 FR 44589 on August 24, 2001. DoD received two comments 
in response to the proposed rule. Both comments were in favor of the 
rule.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD certifies that this final rule will not have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because the rule makes no change to the progress payment rates for 
small business and small disadvantaged business concerns.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Parts 232 and 252

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR parts 232 and 252 are amended as follows:
    1. The authority citation for 48 CFR parts 232 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

[[Page 49865]]

PART 232--CONTRACT FINANCING

    2. Section 232.501-1 is revised to read as follows:


232.501-1  Customary progress payment rates.

    (a) The customary progress payment rates for DoD contracts, 
including contracts that contain foreign military sales (FMS) 
requirements, are 80 percent for large business concerns, 90 percent 
for small business concerns, and 95 percent for small disadvantaged 
business concerns.

    3. Section 232.502-4-70 is amended by revising paragraph (b) to 
read as follows:


232.502-4-70  Additional clauses.

* * * * *
    (b) Use the clause at 252.232-7004, DoD Progress Payment Rates, 
instead of Alternate I of the clause at FAR 52.232-16, if the 
contractor is a small business or small disadvantaged business concern.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 252.232-7004 is revised to read as follows:


252.232-7004  DoD Progress Payment Rates.

    As prescribed in 232.502-4-70(b), use the following clause:

DOD Progress Payment Rates (Oct. 2001)

    (a) If the contractor is a small business concern, the Progress 
Payments clause of this contract is modified to change each mention 
of the progress payment rate and liquidation rate (excepting 
paragraph (k), Limitations on Undefinitized Contract Actions) to 90 
percent.
    (b) If the contractor is a small disadvantaged business concern, 
the Progress Payments clause of this contract is modified to change 
each mention of the progress payment rate and liquidation rate 
(excepting paragraph (k), Limitations on Undefinitized Contract 
Actions) to 95 percent.

(End of clause)

[FR Doc. 01-24390 Filed 9-28-01; 8:45 am]
BILLING CODE 5000-04-M